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Tesla Intends to Launch $35,000 Model in 2017. Pre-Orders to Start March 2016

September 2, 2015

Mobile Forward 00378 2015-09-02

Link to the Tweet1. (Above is a screenshot, to make sure readers can also see it in RSS or email.)

First, this is outstanding. Hope Tesla can deliver on the timing, price, and capability. Second, it’s just one more element, in my view, that Apple considered in its decision to pursue a car, and how intensely to do so. Specifically, Apple would have considered the rate at which key costs would come down (battery and related systems; driver assistance and related systems) down and, from that, how quickly Tesla, Toyota, and others would reach mass market (or near mass market) prices.

Prius, starting at $24,000 is already there (US-centric view). Tesla is two years away, if we assume Elon Musk’s estimate is solid. Combine that with Tesla’s ability to execute (battery, design, product definition, marketing), and these factors likely add to some of the urgency Apple feels. And that’s before we even consider Google’s advances. But, I emphasize, competitor progress is just one element.

By the way, by barely mentioning the Prius, am I implying that Apple pays more attention to Tesla’s progress than Toyota’s? Yes. Tesla has more capability, and more potential, to capitalize on the current (poor) state of cars than Toyota. For simplicity, think about it on this one level: how much emotion do you think a Prius stirs in most people? And a Tesla? … Yep.

______

1. Tip of the hat to Drew Olanoff, at TechCrunch; I learned about Elon Musk’s Tweets from his article.

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Filed Under: Apple, Cars, Tesla

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